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Tuesday, 23 August 2016

Buhari Seeks Emergency Powers To Tackle Economy

President Muhammadu Buhari will be seeking emergency powers from the National Assembly to push his planned stimulus for the economy.

The objectives of the action-plan on the economy, which is in recession, include shoring up the value of the naira, creation of more jobs, boosting of foreign reserves, reviving the manufacturing sector and improving power.

Government sources said the decision to seek emergency powers for the President was based on a proposal from the economic team headed by Vice President Yemi Osinbajo. The team reviewed the various policies so far introduced and how they have affected the economy.

The economic team, it was learnt, gauged the mood of the polity and decided that unless there is an urgency which some of the extant laws will not permit, “the recession may be longer than expected and Nigerians will not get the desired respite, which is the goal of this government”.

An executive bill titled: “Emergency Economic Stabilisation Bill 2016” is to be presented to the National Assembly when the Senate and the House of Representatives resume from vacation on September 12.

In the bill, the executive will be asking for the President to be given sweeping powers to set aside some extant laws and use executive orders to roll out an economic recovery package within the next one year.

Buhari will be seeking powers to:

abridge the procurement process to support stimulus spending on critical sectors of the economy;

make orders to favour local contractors/suppliers in contract awards;

abridge the process of sale or lease of government assets to generate revenue;

allow virement of budgetary allocation to projects that are urgent, without going back to the National Assembly.

amend certain laws, such as the Universal Basic Education Commission (UBEC) Act, so that states that cannot access their cash trapped in the accounts of the commission because they cannot meet the counterpart funding, can do so; and

to embark on radical reforms in visa issuance at Nigeria’s consular offices and on arrival in the country and to compel some agencies of government like the Corporate Affairs Commission (CAC), the National Agency for Foods Administration and Control (NAFDAC) and others to improve on their turn around operation time for the benefit of business.

The extant law on procurement does not allow contract award earlier than six months after decision. Part of this is a mandatory advertisement of the contract for six weeks. The economic team has found this to be unacceptable, given our present circumstance.

Although the president has the power to order the sale or lease of any government asset to raise cash, “the procedure is cumbersome and long”. The draft bill is meant to ease the process. The government source said about nine government assets may be leased or sold to generate around $50billion to shore up the nation’s foreign reserves and the value of the naira against the United States dollar.

The source said: “Nigeria may be broke at the moment but we are not a poor country, given our assets and capability.”

About N58 billion is trapped in UBEC’s coffers because the states cannot access it as a result of the key condition, which is the payment of 50 per cent counterpart funding. The government is seeking an amendment to the law so that states will pay only 10 per cent as counterpart funding.

The objective is that state governments will have access to cash to develop education. This will facilitate creation of jobs since contracts will be awarded for the projects.

As for contract awards, the government, by the provisions of the law, cannot mobilise contractors with more than 15 per cent of contract sum. This is considered to be undesirable by the economic team given the pace the government wants to move in turning the economy around and in the provision of critical infrastructure. The bill will seek to allow the government to mobilise contractors with 50 per cent of contract sum.

The move to get government agencies to fast tract their operations is to enable foreign investors to come into the country without the current bottlenecks.

Consular offices will now be expected to make visas available within 48 hours and visitors, especially tourists who intend to pick up visas at the entry point, will be able to do so.

Time wasting at the airport with duplication of agencies screening incoming passengers is to be eliminated. Those leaving the country should go without hassle.

For the power sector, the government plans to truck gas from source to the power plants to enable them get what they need for generation.

A government source said: “This may be more expensive but it is a price to be paid for Nigerians’ comfort”.

It was learnt that President Buhari will engage the leadership of the National Assembly before their resumption to solicit support for the bill’s quick passage.

saharareporters.

hmmmm Democracy,a system of checks and balances from what i remember.!

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Biko they should refuse.Another trap from this clueless and slow president.Tomorrow,now everyone one will start screaming because trust me all those contracts will be given to clueless northern-fulanis.No one should fall for this to avoid had I known.To me,no other power should be given to him other than the one he had already.Let him keep chasing his opponents in the name of corruption while the country's economy disappear.Job Creation?He should first reinstate the 2000 positions he gave to his relatives and friends.oooooh!how I dislike what this man is doing to us......God pls hurry up the years or ur punishment on this man.to think I use to be one of his die hard supporters...nsogbu adiro because Chukwunonso!

Only dictators do this.In his presentation to NA it will be for economic purposes but with time it could become something else. i dont know but i smell foul play. this is why the government introduced due process thing so one president will not wake up one day and decide to do what pleases him. How did previous government tackle economic crisis without this emergency power. something aint right here to me. this is my view .

Reducing the time to procure Nigeria visas, register companies and sell non core government assests especially some Presidential jets etc should be encouraged. We definitely need to improve our ease of doing business.

They want to make it legit to loot abi?Theres a reason this process was put in place in the first instance. All that virement request would most likely not go through. Coming from Osinbajo, hope its not a plan to reward the people that brought him by under-selling national assets.

On point!My tot too! Power corrupts n wen absolute corrupts absolutely. Y did he not bring a bill or bills as d case may be seeking to amend those extant laws dat are causing bottlenecks rather than bringing a bill seeking to arrogate more powers to himself. We are gradually drifting towards dictatorship. U Dont tru legislation give Nigerian Politicians a mile cos surely they will take a mile extra worst of all a vindictive, self righteous,self acclaimed upright man and anti-corruption warrior.

Anonymous: you made very good points.heard Sun international hotel have decided to take a walk and perharps Expression Hair attachment will follow suit. So I heard.

I also like how you talked about 'your custom tariff'. It is Nogerian ignorance to think that everyone wants to do business here. everyone wants to invest in Nigeria. I hear this all the time from Nigerians and I laugh. Now its dawning on everyone that once the environment is not set right for business, no one will want to come and that good policies keep existing investors. Richard Branson took a walk and so have many others. So these arrogant policies govt make are lost on them. Right now, Nigeria should be petting the people they have not stiffling them. All over Bloomberg, Wall Street journal, our economic viability have been smeared. So, who do the foreigb investors listen to? Buhari who is barely audible or IMF and Wallstreet who tells them Nigeria is bad news now. Our stocks crashed in NY since last year July. So what was all the travelling for?

I recall I warned here that travelling about without creating blueprint and appointing ministers was foolery. But people said he was attracting investors. Pls tell us the result today?I warned about the bogus MTN fine and what it portends. Now over 15 SA companies have left Nigeria including Woolsworth.

In the same vein, i'll still warn about this 'emergency power' and how authoritarian rule will be let in. How can the president usurp all these powers. There is a reason why one man is not allowed to make these rules without recourse to the legislators. The president has wide powers already, even too many and can boost the economy if he can so do. Good monetary policies, reasonable fiscal policies and good environment to enable local manufacturing. All this impact can be made in ministerial level where the president as chief security officer and also commander of all the ministeries can also order to be boosted. But no, he employed square pegs.

Its like the proverbial/biblical man who was given talents and buried them but came back to ask for more. Show us what you have done with the powers vested in you before asking for more.

I see this as a guise for dicatorship. Who says he wont misuse these powers, make fake procurement or appropriate positions and infrastructure to his own part of the country. Judging from his antecedents, its a NO-NO.

Thank you anonymous!...I warned you people here and they didn't listen...Eka Joy,don't mind Stella...how can she bring it when Femi Adesina is her mannest man!...dude sleep and wake up on this blog is you don't know...

Guys, get some education.....the US has this kind of powers and Obama has reportedly used it 235 times in the last 7years to tackle emergency situation and its working. Our constitution is cumbersome and obsolete.....too many bureaucratic processes are involved in policy making in Nigeria...everyone blamrd GEJ for being clueless during his tenure but no one looked tp the legislature for the failures....the legislature had better to this assent to this bill, unless they want the government to fail....we've all be shouting that the economic team should come up with policies that will ease the economy and now that they have come up with something some people are shouting foul..its only for one year anyway....stella, some people just hate PMB and so they will never see anything good in this government...